| Wed 15 Jun 2011, 16:43 | | MMP - Marshall Monteagle PLC - Unaudited interims for 6 month period ended |
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MMP
MMP
MMP - Marshall Monteagle PLC - Unaudited interims for 6 month period ended
31 March 2011 and dividend declaration
Marshall Monteagle PLC
(Incorporated in Jersey Registration No. 102785)
(SA Registration No: 2010/024031/10)
JSE CODE: MMP ISIN: JE00B5N88T08
UNAUDITED INTERIMS FOR 6 MONTH PERIOD ENDED 31 MARCH 2011 AND DIVIDEND
DECLARATION
We report satisfactory results for the six months to 31 March 2011 despite a
background of continued economic uncertainty and volatility in global equity
and currency markets.
Results
Earnings and net assets per share comparatives have been adjusted to reflect
the share capital of the new holding company. All italicised comparative
figures are those relating to Marshall Monteagle Holdings S.A., the former
holding company.
- Group revenue is up 12% to US$104,393,000 for the six months to 31st March
2011, as a result of organic growth and coffee and logistics investments. In
constant currency sales increased by US$6,300,000 (7%).
- Operating profit increased by 20% to US$5,937,000 (2010 - US$4,943,000). In
constant currency operating profit increased by US$307,000 (6%)
- Headline earnings per share increased from 5.2 cents to 8.0 cents (full year
to September 2010 - 8.5 cents).
- First interim dividend of 1.5 cents relating to the 2010 financial year and
second interim dividend of 1.5 cents for the six months to be paid in July
(2010 - 1.5 cents).
- Net assets per share US$1.73 (2010 - US$1.63). Net assets per share have
increased 5% from 30th September 2010 when they were US$1.64 per share.
Import and Distribution
Our shipping and distribution business in food and household consumer products
achieved further growth during the six month period under review and we
invested further in our logistics operations. This division continues to
provide procurement, supply chain and risk management services to multiple
retailers, wholesalers and manufacturers in Southern and Central Africa,
Indian Ocean Islands and Australia. It brings the benefits of dedicated
producers of quality raw materials, skilled technologists, first world
production facilities and well managed warehousing and distribution services
to our customers. We continue to operate in an extremely challenging
environment with volatile raw material pricing and currency movements and are
now having to manage the pressure of cost push inflation coming through from
most international production facilities which is compounded by an economic
environment in which there is little increase in demand from consumers. It
would appear that these conditions will remain over the next six months and
probably well into the 2012 financial year. This division is well positioned
to operate in these volatile market conditions and we expect to maintain a
similar level of trade during the second half of the year.
Our coffee import and roasting business based in Cape Town posted pleasing
results for the six month period with volumes up considerably over the same
period in 2010, when the company was owned by our former associate Conafex
Holdings S.A. The business services the multiple retailers and hospitality
sector in South Africa and management are looking at increasing capacity by
investing in further plant and machinery.
Our tool and machinery distribution business in South Africa continues to be
affected by the consumer slowdown, and turnover and profits were flat when
compared to the same period in 2010. Management are actively looking at
making further improvements to the working capital cycle and expenses continue
to be managed within budget. The business remains well positioned to take
advantage of opportunities when the market starts to improve.
Property Portfolio
Our large multi-tenanted industrial property in San Diego still has a
relatively high vacancy rate of 12% and the property market in Southern
California remains very challenging. Forecasts are that it is going to remain
a tenants market for quite some time yet, but under the circumstances this
quality asset continues to generate a satisfactory return.
Despite slightly increased vacancy levels, the group`s portfolio of commercial
and light industrial properties in South Africa has managed to maintain
consistent returns due to effective management of properties and tenants.
Investment Portfolio
It was another volatile period for global stock markets, but the broader
market finished the six months in positive territory. The marked sell off
during the month of March 2011 provided some opportune buying for the group.
We continue to hold a diverse portfolio of quality equities in first world
markets and have substantial cash for future investment.
Merchant & Industrial Properties ("Merchant")
On 23 May 2011, we announced a firm intention to make an offer to acquire the
5.34% issued share capital of Merchant not already held by the company. Upon
successful implementation of the offer, Merchant will become a wholly owned
subsidiary of the group and its Johannesburg Stock Exchange listing will be
terminated.
Halogen Holdings P.L.C. (unlisted associate)
Halogen Holdings owns 78% of the total issued share capital of Heartstone
Inns, a developing UK group of country pubs specialising in quality food.
Heartstone currently owns and manages five rural pubs. It also manages a
further four pubs which are held through a cost efficient investment company
which is looking at acquiring further units. Heartstone has made a good start
to the year and is trading ahead of budget.
Net Assets
Assets outside Africa, net of minority interests and proposed dividends, stand
at US$29,374,000, equal to US$0.82 per share; the balance of US$32,803,000,
equal to US$0.91 per share, is held in South Africa. Our total net assets
amount to US$1.73 per share which compares to US$1.63 per share as at 31st
March 2010.
Interim dividend
The Company paid an interim dividend of US 1.5 cents per share in April 2011,
which was paid in lieu of the final dividend that would have been paid by
Marshall Monteagle Holdings S.A. had the reorganisation of the holding company
not taken place. We are pleased to announce that the Company is to pay a
second interim dividend of US 1.5 cents per share. The dividend is payable on
15 July 2011 to shareholders on the register at the close of business on 8
July 2011.
Shareholders on the South African register will receive their dividend in
South African Rand converted from US dollars at the closing rate of exchange
on Tuesday 14 June 2011. In order to comply with the requirements of Strate
the relevant details are as follows
Salient dates for dividend
Last day to trade Friday 1 July 2011
Shares trade ex dividend Monday 4 July 2011
Record date Friday 8 July 2011
(date shareholders recorded in books)
Pay date Friday 15 July 2011
Shareholders are hereby advised that the exchange rate to be used will be USD
1 = ZAR 6.766. This has been calculated as the average of the bid/ask spread
at 16H00 (United Kingdom time) being the close of business on Tuesday 14 June
2011. Consequently the dividend of US 1.5 cents will be equal to 10.149 South
African cents.
No dematerialisation or rematerialisation of share certificates, nor transfer
of shares between the registers in Jersey and South Africa will take place
between Monday 4 July 2011 and Friday 8 July 2011, both dates inclusive.
Group Staff
Once again we would like to thank all our employees for their hard work and we
appreciate their efforts and the contribution that they have made during the
period.
Prospects
The Board are pleased with the results for the first half of the financial
year and despite continued economic uncertainty and volatility in equity and
currency markets, our conservative policies and diversity within the group
give us confidence that we can continue to enhance shareholder value in the
long term.
J.M. Robotham, Chairman
D.C. Marshall, Chief Executive
Consolidated Statement of Comprehensive Income
Half years ended Year ended
31 March 30
September
2011 2010 2010
Notes Unaudite Unaudite Audited
d d
US$000 US$000 US$000
Group revenue 2 104,393 93,570 163,870
Operating costs (98,456) (88,627) (154,060)
Operating profit 5,937 4,943 9,810
Share of associated companies` (232) (284) (285)
results
Income from investments - dividends 164 159 397
- interest 170 131 670
Interest paid and similar charges (1,006) (903) (2,461)
Realised exchange gains/(losses) 333 10 (181)
Profit on ordinary activities before 5,366 4,056 7,950
exceptional items and taxation
Exceptional items 3 37 (290) (327)
Profit before taxation 2 5,403 3,766 7,623
Taxation (1,430) (1,023) (2,678)
Profit after taxation 3,973 2,743 4,945
Attributable to outside shareholders (1,075) (1,183) (2,012)
Profit attributable to shareholders 2,898 1,560 2,933
Exchange differences 495 (118) 33
Commercial property revaluations - - 122
Group share of fair value 1,196 1,288 88
adjustments on investments
Total Comprehensive Income 4,589 2,730 3,176
Interim dividend per share (US 1.5c 1.5c -
cents)
Recommended final dividend (US - n/a 3.0c
cents)
Reconciliation of headline earnings
per share
Basic earnings per share (US cents) 4 8.1 c 4.4c 8.2c
Less exceptional items, net of tax (0.1)c 0.8c 0.3c
and minority interests (US cents)
Headline earnings per share (US 4 8.0 c 5.2c 8.5c
cents)
Consolidated Statement of Financial Position
31 March 30
September
2011 2010 2010
Unaudite Unaudited Audited
d
US$000 US$000 US$000
Non-current assets
Property, plant and equipment 42,927 39,363 41,637
Investments
Associates 1,603 3,390 1,797
General portfolio - other listed 16,988 15,070 15,297
investments (note 5)
Other unlisted 286 286 286
61,804 58,109 59,017
Current assets
Inventories 27,900 20,715 26,393
Accounts receivable 33,235 28,059 30,922
Cash 18,101 11,516 11,379
79,236 60,290 68,694
Current liabilities
Accounts payable (falling due within one (45,721) (35,148) (43,259)
year)
Net current assets 33,515 25,142 25,435
Total assets less current liabilities 95,319 83,251 84,452
Accounts payable (falling due after more (16,724) (11,280) (10,453)
than one year)
Provisions for liabilities and deferred (3,516) (2,642) (3,258)
taxation
75,079 69,329 70,741
Capital and reserves
Share capital 8,965 26,893 26,893
Share premium account 23,606 4,905 4,905
Other reserves 8,160 8,152 7,468
Retained earnings 21,984 18,529 19,659
Shareholders` funds 62,177 58,479 58,925
Minority interests 12,902 10,850 11,816
75,079 69,329 70,741
Net assets per share US$ (note 6) 1.73 1.63 1.64
Consolidated Statement of Cash Flow
Half years ended Year ended
31st March 30th
September
2011 2010 2010
Unaudited Unaudite Audited
d
US$000 US$000 US$000
Operating activities
Cash generated from operating activities 4,263 509 5,917
Interest paid (1,006) (903) (2,461)
Taxation paid (836) (704) (1,760)
Net cash (outflow)/inflow from operating 2,421 (1,098) 1,696
activities
Investment activities
Purchase of property, plant and (557) (389) (1,116)
equipment (note 7)
Purchase of investments (1,226) (1,689) (2,898)
Disposal of tangible non-current assets 46 - 508
Disposal of investments 468 1,235 2,371
Disposal of associate less subsidiaries - - 292
acquired
Interest received and other investment 334 243 1,067
income
Net cash (outflow)/inflow from (935) (600) 224
investment activities
Net cash inflow /(outflow) before 1,486 (1,698) 1,920
financing
Financing activities
Net increase/(decrease) in long term 6,271 (286) (1,113)
debt
New shares issued - 414 (6)
Non-controlling interests acquired - (425) -
Dividends paid - group - - (1,071)
Dividends paid - outside shareholders (799) (364) (932)
Net cash inflow/(outflow)from financing 5,472 (661) (3,122)
activities
Net increase /(decrease) in funds 6,958 (2,359) (1,202)
Net funds at start of period 8,567 9,445 9,445
Effect of foreign exchange rates 174 83 344
Net funds at end of period 15,699 7,169 8,587
Notes to the interim statement
1. The results and the cash flow statement for the half-year ended 31 March
2011 are unaudited and comply with IAS 34 - Interim Financial Reporting. They
have been prepared on the basis of accounting policies adopted in the accounts
of the former parent company for the year ended 30 September 2010, which
comply with International Financial Reporting Standards and Luxembourg law.
The results for the year to 30 September 2010 are an abridged version of the
former Group`s full accounts for that year, which have been filed with the
relevant authorities.
2.The segmental analysis of revenue and operating profit is as follows:
Half years ended 31 March Year ended 30
September
2011 2010 2010
US$000 US$000 US$000
Revenue Result Revenue Resul Revenue Result
t
Analysed by
activity:-
Import/distribu 101,954 5,190 91,329 4,577 159,447 9,363
tion
Property 2,398 907 2,204 798 4,354 1,608
Other 41 174 37 (142) 69 (94)
104,393 6,271 93,570 5,233 163,870 10,877
Share of (232) (284) (285)
associated
companies
results:-
Exchange 333 10 (181)
gains/(losses)
Interest paid (1,006) (903) (2,461)
5,366 4,056 7,950
Exceptional 37 (290) (327)
items
Profit before 5,403 3,766 7,623
tax
3. The exceptional items arise from the following.
31st March 30th
Septembe
r
2011 2010 2010
US$000 US$000 US$000
Property revaluations - - 336
Profit/(Loss) on disposal of listed and 25 (61) (219)
unlisted investments
Fair value adjustments of financial (6) (173) (83)
assets
Profit on disposals of non-current 18 - (135)
tangible assets
Re-organisation costs - (56) (226)
Net exceptional items 37 (290) (327)
4. Earnings per share are based on results attributable to members and on
35,857,512 shares in issue (2010: March - 35,857,512; September - 35,711,082).
Headline earnings per share exclude extraordinary items after tax net of
minority interests.
5. A geographical analysis of the General Portfolio of investments is as
follows:-
United Kingdom 3,669 3,607 3,518
United States of America 4,980 4,219 4,266
Europe, excluding the U.K. 4,068 3,351 3,579
Switzerland 3,494 2,991 3,144
Japan 777 902 790
16,988 15,070 15,297
6. Net assets per share are based on Shareholders` funds after allowance for
proposed dividends, divided by the number of shares in issue of 35,857,512 at
the period end (2010: March - 35,857,512; September - 35,857,512).
7. There was capital expenditure of US$557,000 during the period (2010 -
US$389,000). There was no contracted or outstanding authorised capital
expenditure at the balance sheet date.
Johannesburg
15 June 2011
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 15/06/2011 16:43:01 Produced by the JSE SENS Department.
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